The olive oil market is a global industry that involves the production, processing, and distribution of olive oil. The market is driven by the growing demand for healthy and natural food products, as well as the increasing use of olive oil in the cosmetics and pharmaceutical industries.
The Olive Oil Industry: An Analysis
According to a research report, the size of the worldwide olive oil market stood at $12.3 billion at the end of 2022. The industry is set to compound annually at an average growth rate of 6.48% from 2022 to 2028 and reach $17.93 billion. The market is segmented based on type, application, and region. Based on type, the market is segmented into extra virgin olive oil, virgin olive oil, and refined olive oil. Extra virgin olive oil is the highest quality and most expensive type of olive oil. It is made from pure, cold-pressed olives and has a fruity, green flavor. Virgin olive oil is also made from pure, cold-pressed olives, but it may not meet the strict standards for extra virgin olive oil. Refined olive oil is made from virgin olive oils that have been treated with chemicals or solvents to remove impurities and improve the oil’s shelf life. It has a milder flavor than extra virgin or virgin olive oil.
Famous olive oil producers are renowned for creating high-quality, rich, and adaptable olive oil that is used in a range of cuisines. Located in Spain, Deoleo, S.A. (BME:OLE) processes olive oil on a global level and is known as the biggest bottler in the world. The company has popular brands such as Bertolli, Carbonell, Carapelli, and Koipe in its portfolio, which are sold in more than 70 countries. In 2021, Deoleo, S.A. (BME:OLE) sold 192.5 million liters of oil and received over 20,000 oil samples for quality check. Similarly, Borges S.A. is a Spanish company that has been engaged in the production of exceptional quality extra virgin olive oil since 1995. The company's extra virgin olive oils have received many quality certificates, reflecting its strict quality standards. Another major player in the olive oil industry is the Salov Spa Group which has been operating the in the sector for over 100 years. The company is known for its premium extra virgin olive oil brand, Filippo Berio.
It is well-documented that the olive oil market is plagued by fraud and mislabeling. Some extra virgin olive oil is not made from olives but rather is a blend of cheaper oils like sunflower or canola oil. This is often referred to as “olive oil fraud.” Olive oil fraud often involves oil dilution and substitution in non-EU nations. For instance, in Brazil, the most typical fraudulent approach involved combining olive oil with lampante or soya oil. An investigation by the Ministry of Agriculture, Livestock, and Farming (MAP) in Brazil in 2017 revealed that from the 140 brands of olive oil examined over the course of the last two years, 45 were found to not fulfill the quality standards specified by their labeling. Producers in many countries have been found to be using the term “extra virgin” even though the oil does not meet the standards for that grade. It is important to look for certifications from reputable organizations, such as the International Olive Council (IOC), to ensure that you are buying genuine extra virgin olive oil. Additionally, you can look for a “harvest date” on the bottle, as extra virgin olive oil should be consumed within two years of being harvested. In terms of virgin olive oil exports, Spain is the largest producer and exporter of olive oil in the world, followed by Italy, Morocco, and Portugal. Greece, Tunisia, and Turkey are also significant olive oil-producing and exporting countries.
12 Countries that Produce the Best Extra Virgin Olive Oil
Our Methodology
We have scoured multiple websites such as Olive Oil Times, California Olive Oil Council, and Greek Reporter to analyze the consensus opinion of experts on the quality of the extra virgin olive oil being produced by countries globally. We have also referred to the 2022 EVOO World Ranking of extra virgin olive oils by country. The EVOO World Ranking was established to introduce consumers to the extra virgin olive oils that have received the highest accolades worldwide. For the shortlisted countries, we have included data for the 2021 value of exports of olive oil and its components that are not chemically modified to provide further context to the reader regarding the production capabilities of these countries. It should be noted that the list does not comprise the world’s top olive oil exporting countries but rather the best-quality virgin olive oil producing countries. The countries have been ranked in ascending order of their exports.
12 Countries that Produce the Best Extra Virgin Olive Oil
12. Israel
2021 Olive Oil Exports: $3.6 million
Israel produces about 16,000 tons of extra-virgin olive oil (EVOO) annually from its approximately 81,000 acres of olive orchards. The majority of the country’s olive oil production is centered around the Shomron region, Golan Heights, and the Galilee region.
Israeli extra virgin olive oil is regarded as a viable substitute for olive oils from the Mediterranean region because of its fruity and well-balanced flavor. Israeli olives are watered using salted, sterilized wastewater, which does not damage the quality of the fruit and enables producers to use fewer fertilizers. The country’s extra virgin olive oil is often of high quality because the nation has strong laws and quality control procedures implemented by The Israeli Ministries of Agriculture and Health.
11. Morocco
2021 Olive Oil Exports: $40 million
Morocco is known for producing high-quality olive oil, particularly in the regions of Meknes, Fes, and Souss-Massa. The country’s olive oil industry is dominated by small-scale farmers and cooperatives, with the majority of production taking place in rural areas. Moroccan olive oil is made from a variety of olive cultivars, including Chemlali, Chetoui, and Koroneiki, and is characterized by its fruity, slightly bitter taste. It is used in a wide range of traditional Moroccan dishes, as well as for dipping and dressings. Moroccan olive oil is also exported to many countries worldwide. The company is a net exporter of olive oil, as it imported only $20 million worth of olive oil in 2021.
10. United States of America
2021 Olive Oil Exports: $44 million
The US olive oil industry is dominated by large-scale industrial producers, but there are also several small-scale, artisanal producers. To ensure the quality of olive oil, the US Food and Drug Administration (FDA) has issued strict guidelines for the labeling of olive oil products to ensure that consumers get accurate information about the product. The California Olive Oil Council (COOC) has laid down a detailed process to certify California oils as extra virgin, while the North American Olive Oil Association (NAOOA) evaluates supermarket oils in accordance with the guidelines established by the International Olive Council.
The United States of America (USA) is a rapidly growing market for olive oil. Not only is the country a major exporter of olive oil, but it also imported $1.49 billion worth of olive oil in 2021. This made the US the world's second-biggest importer of olive oil last year. In the US, California is the largest producer of extra virgin olive oil, with producers experimenting with a variety of cultivars, such as Arbequina and Koroneiki, that are less acidic and more tolerant to the region’s environment and pests.
9. Chile
2021 Olive Oil Exports: $55 million
Chile is known for its high-quality olive oil globally, as it is mild in nature and recommended for cooking or salad dressing with an acidity level of 0.2% or less. In the last two decades, there has been a transformation in Chile as it reduced its reliance on imported olive oil from Spain and Italy and is now climbing the ladder to become a top olive exporter in the world. The northern region of the country is responsible for major products as it has a favorable climate and soil for olive growing, and the government has been promoting the industry as a way to diversify agriculture.
8. France
2021 Olive Oil Exports: $69 million
France is a major producer of extra virgin olive oil, and the majority of the production takes place in the southern regions of Provence, Languedoc-Roussillon, and the islands of Corsica and Sardinia. French olive oil is known for its fruity and slightly bitter taste. The main importers of French olive oil are Italy, Spain, and Germany. The country also imported $568 million worth of olive oil in 2021, which made the nation the third biggest importer of olive oil in the world as it was responsible for importing 6.59% of total olive oil imported globally. The export and import statistics reflect the well-established state of the olive oil industry in France.
7. Argentina
2021 Olive Oil Exports: $93 million
Argentina is a relatively new player in the global olive oil market. The country has become a net exporter of olive oil as it imported only $5.1 million worth of olive oil in 2021. The Government of Argentina granted the extra virgin olive oil produced in the state of Mendoza a protected geographical indication (PGI) status in March 2022. The region is known for producing the native Arauco variety, which is known for generating superior-quality oil. The local farmers have appreciated this move as it will aid them in enhancing the quality of the olive oil. The states of San Juan and La Rioja are also known for producing extra virgin olive oil.
6. Turkey
2021 Olive Oil Exports: $170 million
Turkey has a long history of olive farming and is a notable extra virgin olive oil producer. The most prevalent varieties of olives in the nation are Ayvalik, Memecik, and Gemlik. Most of the extra virgin olive oil producers in the country utilize two main methods of oil extraction. Extraction by stone, which presses the olives to liberate their oils, is the country’s traditional method of extraction. Another renowned method is called “cold pressing,” where the temperature is kept low throughout processing to preserve nutrients like polyphenols.
Turkey has seen a rapid increase in the export of extra virgin olive oil, as it exported 58,000 tons of olive oil during the 2021-22 crop season. The US remains the biggest importer of Turkish olive oil, as it imported $75 million worth of the product in 2021. Spain and Japan are the second and third biggest export markets for Turkish olive oil, as these countries imported $24 million and $17 million worth of olive oil, respectively, in 2021. The country anticipates its olive oil exports to reach $500 million in 2023 as the decline in production across the majority of European countries will bring Turkish premium quality olive oil into the limelight.
In addition to Turkey, Spain, Italy, and Greece are also among the countries known to produce the best extra virgin olive oil.
